Insight
Study News (Winter 2011)
Austudy/Abstudy recipients from 2007 to 2011**
The ATO have announced they will, in June 2011, automatically amend taxpayer, who are in receipt of Austudy and Abstudy, tax returns to allow a deduction of $550 to cover the education expenses taxpayers incurred for 2007 to 2010. This is a result of the ANSTIS high court case. If your expenses exceeded $800 and you can demonstrate that you incurred higher expense you can amend your tax return rather than accept the standard deduction.
** The government announced in the budget that they will change the laws to disallow such claims after the financial year ended 30 June 2011.
Newstart and Austudy seeking work recipients 2007 to 2011**
As a result of the ANSTIS high court decision the ATO have also extended the decision to taxpayers who were in receipt of Newstart Allowances and Youth Allowance who are job seekers and allow claims for the costs of actively seeking work, provided that they have some written evidence to prove the expenses have been incurred. To claim a deduction, the expense must directly relate to you seeking paid work, which includes meeting the requirements of your Employment Pathway Plan.
Examples of deductions that may be claimed include:
- training courses, including self-employment training and assistance and text books
- phone calls you make seeking paid work
- resume preparation.
Note: - The ATO have said that they do not consider clothing and meals as a direct expenses
** The government announced in the budget that they will change the laws to disallow such claims after the financial year ended 30 June 2011.
